LCNB in Lebanon, Ohio, has agreed to buy Eagle Financial Bancorp in Cincinnati.
The $2.4 billion-asset LCNB said in a press release that it will pay $23.1 million in cash and stock for the $176 million-asset Eagle. The deal, which is expected to close in the second quarter, priced Eagle at 91% of its tangible book value.
Eagle has three branches, $141 million of loans and $135 million of deposits.
“LCNB and Eagle have a similar legacy of providing Southwestern Ohio communities with trusted financial services for over 140 years,” Eric Meilstrup, LCNB’s president and CEO, said in the release.
The acquisition “will provide more benefits, financial products, and opportunities for Eagle’s customers, and create the premier community banking institution in the Cincinnati/northern Kentucky market,” he added.
Patricia Walter, Eagle’s president, will join LCNB as an executive vice president.
Excluding $5.1 million of merger-related costs, LCNB expects the deal to be modestly accretive in 2024 and roughly 11.5% accretive the following year. It should take about two years for LCNB to earn back an estimated 2.4% dilution to its tangible book value.
LCNB plans to cut about half of Eagle’s annual noninterest expenses, or $6.4 million.
LCNB on Nov. 1 bought Cincinnati Bancorp.
LCNB was advised by Hovde Group and Dinsmore & Shohl. Eagle was advised by Janney Montgomery Scott and Luse Gorman.